Definition
Net 30 is the most common B2B payment term in many markets. Variants include Net 7, Net 14, Net 60, and Net 90. The 'Net' prefix means the gross amount, with no early-payment discount built in.
Some buyers interpret 'Net 30' as 30 business days; legally, it almost always means 30 calendar days unless explicitly stated otherwise. To remove ambiguity, write 'Net 30 calendar days' or simply state the explicit due date alongside the term.
Why it matters
Net 30 sounds standard but it ties up your cash for a month. For new customers or smaller transactions, shorter terms protect cashflow; for established corporate accounts, Net 30 may be the entry-level term they require. Defaulting to Net 30 because it 'sounds professional' is one of the most expensive small-business habits.
Where this appears in your tools
Net 30 is the default in most invoicing tools but should be reviewed for each customer relationship — set the right default for your typical customer in your business profile.
Example
Invoice 5,000, issued 1 March, Net 30 terms. Due 31 March. If paid on 30 April, the buyer has used your money interest-free for 60 days — a hidden cost most invoices never recover.
Common confusion
Net 30 is not the same as '30 days from when you remember to look at the invoice.' The clock starts on the issue date, regardless of when the buyer's accounts team processes it.